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Milk price forecast muddled; likely lower for 2012

The number of cows being milked is increasing. The amount of milk each cow is producing continues to climb. Exports, weather, feed cost, and high prices for used dairy cattle create a muddled forecast for what dairy producers are likely to receive for the milk they market this year, according to the latest Dairy Situation and Outlook by emeritus professor Bob Cropp, Department of Agricultural and Applied Economics.

Cropp notes that market forces, such as increasing milk production, are working now to dampen milk prices this spring. But as feed costs increase and hot summer weather begins, dairy producers may see improving prices as the year wears on. For the complete report and more information visit the Understanding Dairy Markets web site.